Cape Coral Housing will NOT be accepting any new applications for the NSP Purchase Assistance Program!!!!
If you have previously submitted your application, please know that we are currently in the process of reviewing and certifying all qualified applications, and you will be notified of what programs are still available.
CITY OF CAPE CORAL
NEIGHBORHOOD STABILIZATION PROGRAM
Purchase Assistance Program*
The US Department of Housing and Urban Development created the Neighborhood Stabilization Program to stem the decline of neighborhoods and home values as a result of foreclosures. The City of Cape Coral has allocated $1,000,000 dollars in purchase assistance funds for households purchasing homes in eligible areas.
This program is intended to assist persons in purchasing move-in ready homes within the designated areas.
Eligible homebuyers will receive 20% of the contract price plus closing costs. In addition, if the home does not contain appliances, an energy star appliance package will be included.
Example of assistance:
Contract price $102,000
Appraised value must be ≥ $103,020
Client $2,000
Purchase Assistance $20,400
First Mortgage amount $79,600
Second Mortgage amount (w/ closing costs) $26,400
Loan-To-Value (LTV) 104%
Who is Eligible
In order to receive assistance through the Foreclosure Purchase Assistance Program, individuals must meet federal income eligibility limits. These limits are based on the income and assets of all residents in the household and adjusted on an annual basis.
Household Size
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Maximum Income
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1
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$51,000
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2
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$58,320
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3
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$65,520
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4
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$72,840
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5
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$78,720
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6
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$84,480
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7
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$90,360
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8
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$96,120
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The home must be the primary residence of the client. The City of Cape Coral will check the property's homestead status through the Lee County Property Appraiser on an annual basis.
Home Eligibility
Homes purchased must be existing single family residences located in the City of Cape Coral. This includes condominiums and townhouses under fee simple ownership.
The home must also be located in a designated Neighborhood Stabilization Program Area of Specified Need. A map is available below.
Home must be bank owned.
In accordance with NSP guidelines, the purchase price must be at a minimum discount of 1% of the appraised value.
Buyer must obtain a written property inspection report from a qualified home inspection company prior to the close of escrow. In addition, a HUD HQS Form must be completed. If the home does not meet HUD HQS guidelines it will not be eligible for funding. Homes located in the Special Flood Hazard Area are required to maintain flood insurance.
Loan/Contract Requirements
All funds will be secured by a subordinate second mortgage for a specified time period of 5-15 years based on the amount of assistance.
Complete loan to value including all liens shall not exceed LTV of 105%.
Lender fees not to exceed 3% of the loan value (application fee, appraisal review, closing fee, commitment fee, discount points, document preparation fee, origination fee, processing fee, underwriting fee, partner fee, mortgage broker fee, administration fee).
No seller financing.
Fixed Interest Rate Loans – No adjustable rate mortgages (ARMS) or balloon payments.
No prepayment penalties.
Thirty year maximum amortization.
Lender must adhere to FDIC Statement on Subprime Lending.
Real Estate Contracts should be written to allow for cancellation should the home not appraise or pass minimum housing quality standards within a certain time period.
Other Program Requirements
Applicants must provide $2,000 of their own funds to the purchase of the property.
All persons receiving assistance through the NSP Purchase Assistance Program must attend eight hours of first-time homebuyer counseling through a HUD approved counseling agency.
Application and Program Information
This program is being run by Cape Coral Housing Development Corporation, a non-profit organization. The agency can be reached at 239-471-0922. The agency's website address is www.capecoralaffordablehousing.com.
Applications for the program are available by contacting the agency directly.
Clients are served on a first come-first ready basis.
*Program requirements subject to change at the discretion of the City of Cape Coral and/or the US Department of HUD.
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